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Thesis: Taking an enterprise (Data knows no boundaries, so risk can no…

Thesis: Taking an enterprise

Data knows no boundaries, so risk can no longer be approached by segmented groups dedicated to Risk type or business unit. Horizontal alignment provides more shared data for analytics and insights and provides a more universal view to assess inter-group workflows, implement standardized controls, and execute rapid responses to broad-reaching risk. A concerted approach to creates a synergy in which risk functions and business units can enhance each other with new levels of analytics and information that will reduce risk, optimize workflows, and increase business.

The Power of Data: Optimization over Prevention

Benefits to Non-Risk Firms

Risk groups have data knowledge, resources and capabilities that could greatly benefit other business units. Because of data Risk today is measurable, and as such can be assessed, evaluated and weighed against benefits to make more informed decisions to meet risk appetite.

Consolidated view of balance sheets for risk-return optimizationEasier to identify gaps, create greater efficiencies, and a more standardized approach

Risk data and analytics can be integrated with other groups to enhance decision making.

Risk-as-a-Service – Share these insights with clients

Benefits to Risk

Access to the data from other groups enhances risk analytics, enables greater insights, more accurate predictions, and gives a broader view of clients.Each of the primary risk functions serves to benefit.

Credit

More complete picture of client relationships

Use industry and market research to anticipate loan requests based on borrower industries

More thorough KYC and underwriting

Market

More factors to use to identify correlations when caluclating asset trend and volatility risk

Operational

Process optimization leads to automation which reduces human error and fraud associated with manual work

Trend modelling can identify upcoming surges in unusual activity that Operational Risk/IT teams can use to predict potential system failures and address the problem before catastrophe,

Making significant alterations to a risk approach can seem risky in and of itself, however innovation is happening regardless emerging FinTechs, challenger banks, and innovation-driven competitors are and will continue to leverage risk functions as a competitive advantage over those that don’t. Such innovations include: